A new marketing mix model to rescue the hospitality industry: Evidence from Egypt after the Arab Spring

Abstract

After January 25th 2011 Egypt witnessed political, economic and social instability leading to drastic consequences in the hospitality and tourism industry. Thus unstable situation reflected on the deteriorated occupancy percentages that led to declined profit margins, higher employee layoffs and degraded quality of product and services. The objectives of this research is to examine how the Egyptian hospitality properties manage this dilemma through their marketing practices, and to propose a new marketing mix model that adds new layers of depth to the traditional marketing mix model. A methodological framework was designed to help in the assessment process of management practices pertaining to marketing initiatives during times of crisis. Results indicated the presence of tactical elements that assembled the traditional marketing mix model in the investigated hotels. However, these elements are not effectively used and the interaction between them not appears very clear. Results also indicated that the new proposed model would help in providing a framework for the Egyptian hospitality industry to maintain their competitive position during crisis time and avoiding undesired situations for labour force and decline of companies׳ revenues.